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Personal Contract Purchase (PCP) Car Finance

  • Find the perfect deal for you with tailored terms and flexible finance options
  • We’ll look to beat any quote you find elsewhere
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Rates from 8.9% APR. Representative 19.5% APR.
Car Finance 247 Limited is a credit broker, not a lender.
ford fiesta

Rates from 8.9% APR. Representative Example (PCP): Car price £12,000, Term 4 years, Deposit £0, Total amount of credit £12,000, Representative 19.5% APR fixed rate, Monthly payment £268.66, Option to purchase fee £1 payable, Total cost of credit £6,517.02, Total amount payable £18,517.02, Optional final payment £5,890.00, Annual mileage 8,000pa.

Car Finance 247 Limited is a credit broker, not a lender.

What is PCP?

PCP is a type of car finance that gives you options at the end of your agreement. You can choose to buy the car, give it back, or trade it in for a new one.

Unlike Hire Purchase, your PCP loan doesn’t have to cover the full cost of your car during the term of the loan. Therefore, your monthly payments may be cheaper. You simply finance the vehicle's depreciation over the agreed finance term and have a guaranteed future value (balloon payment) to pay at the end of the agreement, if you want to keep the car.

Keep in mind that terms and conditions will apply. You’ll need to agree to a set mileage, and not damage the car to avoid paying extra charges at the end of your contract.

PCP might be suitable for individuals, businesses, and could be accessible to people with a range of credit circumstances. It could be a great choice for you if you like to change cars regularly, don’t drive a lot of long distances, and want to keep your monthly payments low.

How much you’ll pay each month may depend on:

  • The size of your deposit
  • The car you’ve chosen
  • The cost of your car
  • The interest rate
  • The number of miles you drive
  • How much the lender expects the car to be worth at the end of your agreement

How does PCP finance work?

It’s as easy as 1, 2, 3…


The balloon payment amount is based on the car's Guaranteed Minimum Future Value (GMFV), and reflects what the car is estimated to be worth when the agreement ends. It’s agreed to at the start of the PCP agreement, and paid at the end if you want to keep the car.

Am I eligible for PCP finance?

PCP finance may be available to a wide range of applicants through our panel of trusted lenders. Acceptance isn't guaranteed, but we'll do our best to find you a deal that works for you.

You can apply for PCP if you:

  • Are a UK resident aged 18 or over
  • Are employed
  • Are self-employed
  • Are a contract worker
  • Have bad credit
  • Have a limited credit history
  • Don’t have a deposit

Want to check your eligibility? Apply today - no impact on your credit score. We use a soft search to give you a quote. If you proceed, a hard search will be conducted which may impact your credit score.

Please note that car age limits may apply for some lenders, and approval is subject to status and eligibility.

PCP finance example

Let's say you're looking at a car priced at £12,000. It's expected to drop in value (depreciate) throughout the life of the agreement based on both how long you expect to keep the car for and how many miles you expect to drive per year.

Here's what you'd pay, based on 19.5% APR (fixed) over a 4 year loan term with an annual mileage of 8,000, for illustration purposes only:

  • Amount of credit: £12,000
  • Loan term: 48 months
  • Monthly payments: £268.66
  • Optional final balloon payment: £5,890

At the end of the agreement, the total you would have paid if you choose to return the car will be £12,627.02 (your monthly payments). If you make the final balloon payment and keep the car, your total comes to £18,517.02.

The difference between HP and PCP finance

Feature Hire Purchase (HP) Personal Contract Purchase (PCP)
Automatically own the car at the end
Optional final balloon payment
Requires initial deposit Optional Optional

PCP Car Finance Calculator

For illustration purposes only. The rate and payment you may be offered will be based on your individual circumstances.

Vehicle Price
£
Deposit
£
Finance Term (Months)
Your Credit Profile
Type of Finance
48 monthly payments of at 10.9% APR
Apply Now
Breakdown
Vehicle Price
Deposit
Amount to Finance
APR
Option-to-purchase fee
£10
Total Cost of Credit
Total Repayable

PCP finance with bad credit

It may be possible to get PCP car finance with us if you have bad credit. A bad credit score doesn't automatically rule you out, and we work with a wide panel of trusted lenders, some of which specialise in helping people with bad credit get on the road, subject to status.

When lenders assess a bad credit PCP application, they'll consider more than just your credit history. They also look at factors like your income, affordability, and whether you're putting down a deposit.

As a broker, we have access to multiple trusted lenders, which may improve your approval chances compared to applying directly to a single lender. Different lenders have different criteria, and we search across the panel to try and find you a match.

There are no guarantees, and interest rates may be higher for bad credit applicants. But we'll do our best to find you a deal that works.

Ready to see your options? Get a quote today and see your options.

How to get PCP finance with CF247

Getting your car finance sorted with us is straightforward. Here's what to expect:

  1. Get a quote online — Fill in a few details and get a personalised quote with no impact on your credit score. We use a soft search to give you a quote. If you proceed, a hard search will be conducted which may impact your credit score.
  2. We search our lender panel — We aim to match your application against our panel of lenders to find the best fit for your circumstances.
  3. Get a decision — Once you have approval in principle, you'll get an idea of what you can borrow and what your monthly payments could look like.
  4. Choose your car — Search from over 95,000+ cars in our member’s area or enter the reg of the car you’ve got your eye on.
  5. Drive away — Once everything is agreed and signed, you're ready to pick up your car! It’s that simple.

Making car finance simple for 500,000+ customers

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Literally within 48 hours she'd got the finance for me
Michael Bought a Jaguar I-PACE Electric
Very good customer service, very quick and simple. Definitely would recommend using them, very happy
Molly
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Within the same day found the perfect car at the perfect price
Liandra Bought a Peugeot 3008
It was so easy and hassle free, most of it done over WhatsApp which was really good for me with working long hours. And the staff were fantastic.
Overall very happy with the service
Jack
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They made sure I was happy and got me the best rate
Sanjeev Bought a BMW M340i Xdrive
My experience was really great with these guys. Easy quick and effective. Kept me in loop all the way and got me finance approved when everyone else couldnt. Highly recommend them.
Harjinder

Featured Guides

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Frequently Asked Questions

We look to find the best rate from our panel of lenders and will offer you the best deal that you’re eligible for. We will be paid a commission for providing our services and this commission may be a fixed amount or a percentage of the amount borrowed. The interest rate you pay is directly linked to the amount you are borrowing and your individual credit status.

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Representative 19.5% APR. Car Finance 247 Limited is a credit broker, not a lender.